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Microeconomics

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Supply and Demand: Pineapples

MICRO-KNE9XU

There are $1000$ identical pineapple farmers in a competitive market. Every year they see the price that pineapples are going to command in the market and decide how much to grow.

If pineapples are going to have a price of \$2, then 100,000 pineapples will be grown.
If pineapples are going to have a price of \$3, then 200,000 pineapples will be grown.
If pineapples are going to have a price of \$4, then 280,000 pineapples will be grown.
If pineapples are going to have a price of \$5, then 330,000 pineapples will be grown.

What is a farmer's marginal cost of growing the 280th pineapple?

A

\$280

B

\$4

C

\$1

D

\$80